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Skype Co-Founder: EBay Overpaid for Us

Niklas Zennstrom, co-founder of Internet telecom group Skype, said on Tuesday he agreed the original valuation put on the company by purchaser eBay was too high.

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CNBC.com

"We had to chart the trajectory of growth and how fast that would run, (but) we found out that was a bit front-loaded," Zennstrom told the annual ETRE technology conference in Hungary.

"We overshot in terms of monetization," he said.

EBay said last week it would cut as much as $1.2 billion off the $4.3 billion potential price it agreed to pay for Web-based phone-calling service Skype two years ago.

The write-down on the value of the deal came as eBay said Skype co-founders Niklas Zennstrom and Janus Friis had resigned as executives, and marked a tacit admission of lackluster returns from Skype since eBay acquired it two years ago.

EBay said it had paid $530 million to Skype shareholders, including Zennstrom.